April 2 (Bloomberg) -- Lynas Corp., the Australian company
building the world’s largest rare earths plant in Malaysia, fell
in Sydney on the dimming outlook for prices and concern its
permit may be reviewed should the opposition wrest power in the
coming Malaysian elections.

The stock fell 9.8 percent to 50.5 Australian cents at the
end of trading, its lowest close since June 11, 2010. The
benchmark S&P/ASX 200 Index gained 0.4 percent.

The Malaysian elections could be held later this month
after the New Straits Times reported today Prime Minister Najib
Razak may dissolve parliament as early as tomorrow.

“There seems to be no recovery in the rare earths industry
this year and sentiment is made worse by speculation about the
election in Malaysia,” Shamu said by phone from Melbourne.

Lynas won’t comment on speculation or stock price movement,
Cameron Morse, a spokesman for Lynas who works for FTI
Consulting, said by phone from Sydney.

Lynas began production in February at its 11,000 metric
ton-capacity first-phase refinery in Malaysia’s Pahang state
after delays due to protests and legal challenges over radiation
concerns. The company said March 4 it was on schedule to
commission the second phase in the second quarter that would
double annual capacity.